The Asian Development Bank (ADB) and the ENGIE group signed a long-term loan of up to 4.66 billion Indian rupees (about $65.5 million) to construct and operate a 200-megawatt alternating current solar photovoltaic-based power plant at Raghanesda Solar Park in India’s western state of Gujarat.
The agreement was signed by Principal Investment Specialist at ADB’s Private Sector Operations Department Mayank Choudhary and ENGIE group’s Head of Acquisitions, Investments, and Financial Advisory Phuntsok Wangyal. Electro Solaire Private Limited (ESPL), a special purpose vehicle owned by the group, will implement the project. ADB, along with another international lender, will provide the entire debt required to construct the solar power plant.
“The project will enable the ENGIE group to expand its renewable energy capacity in India and send positive signals to global investors to continue supporting the growth of renewable energy in India,” said Mr. Choudhary. “The project is part of ADB’s ongoing support to India’s renewable energy sector and will help the Government of India meet its targets for non-fossil fuel-based electric power generation.”
“We are glad to extend our relationship with ADB to Indian projects, and the Raghanesda Solar Project is our commitment to the government’s non-fossil power generation efforts,” said Mr. Wangyal. “Apart from generating green power, the project will create about 1,200 direct and indirect jobs.”
The company is collaborating with the Government of Gujarat to construct the project and has signed a power purchase agreement for 25 years with the state government.